The X Factor: Charles Garland previously built up key brands at 19 Entertainment such as SClub7 and Pop Idol. Photograph: Rex Features/Ken McKay

Charles Garland, a former chief operating officer of Simon Fuller's 19 Entertainment group, has been appointed the new chief operating officer of Syco, the company owned by Simon Cowell, MediaGuardian understands.

Garland will replace Ellis Watson, who left Syco for family reasons last year after less than a year at the company.

Garland is understood to have told friends that his remit will be to run the company "alongside Cowell" and to oversee the worldwide operation of the company that co-produces ITV1's The X Factor and Britain's Got Talent. He has also told friends his brief is to "expand the business".

The news may come as a blow to Fuller.

Charles Garland worked at 19 Entertainment from 1999 to 2006 and helped build up its key brands such as SClub7 and Pop Idol.

Prior to joining 19, he worked at leading ad agency Bartle Bogle Hegarty where his portfolio of clients included Audi, NatWest, BT and Levi's.

Under the deal with Syco, Garland will also retain 100% of his talent and branding company, Crystal Entertainment, and will continue to operate the business independently.

Crystal is a company structured to build entertainment properties through "developing and attracting creative ideas and talent by providing a mixture of marketing and investment capability".

A Syco spokeswoman had not been able to respond at the time of publication.

• To contact the MediaGuardian news desk email editor@mediatheguardian.com or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000.

• If you are writing a comment for publication, please mark clearly "for publication".